Hyatt Hotels Corporation is showing its faith in Bangkok by choosing the city as the location for its first hotel in Southeast Asia under its Hyatt Place brand.
Verma: Hyatt has Asia-Pacific focus
Despite high competition and an oversupply of hotels in Bangkok, the company still sees potential for long-term growth.
Ratnesh Verma, senior vice-president for real estate and development of Hyatt Hotels and Resorts, said the regional economy has shown a positive trend and Thailand is one of the most popular destinations for international tourists, particularly from China and India.
Among Hyatt's 496 hotels in 45 countries, 68 are in the Asia-Pacific region, where at least 80 hotels will be added in the next five years. About 175 hotels are under development _ half of them in China and India.
"This obviously shows that Hyatt has further shifted its focus to Asia-Pacific to keep up with the robust economic trend," Mr Verma said.
Hyatt has seven hotel brands _ Hyatt, Park Hyatt, Andaz, Grand Hyatt, Hyatt Regency, Hyatt Place and Hyatt House.
The chain projects that Hyatt Place will significantly drive growth for its Asia-Pacific operation.
The upscale Hyatt Place brand was launched in 2006 and has become successful in the United States.
The introduction of the brand to Bangkok represents an integral stepping stone for the chain's development in this prime market.
Owned by Pioneer Property Company Ltd (PPC), Hyatt Place Bangkok will be located in Sukhumvit Soi 24. The 220-room hotel is expected to open in 2017 for business and leisure travellers.
The Hyatt group is also opening two other Bangkok hotels _ Park Hyatt Bangkok in 2014 and Hyatt Regency in 2017.
Grand Hyatt Erawan Bangkok and Hyatt Hua Hin are the group's only current hotels in Thailand.
"Bangkok is strategically important for both business and leisure travellers when they visit Thailand," said Mr Verma.
PPC president Sanya Srisakulchawla said the company sees long-term potential for the hotel business in Bangkok.
"We are confident in the future of Thailand's tourism industry. It's still running well and when our hotel is opened in 2017, the hotel business should return to a peak," he said.